Six major central banks have made joint arrangements to provide US dollar liquidity to global financial markets amid the turmoil following the collapse of Silicon Valley Bank earlier this month and the bailout of Credit Suisse over the weekend . The central banks announced this on Sunday. Starting today, the European Central Bank, the Federal Reserve, the Bank of England, the Bank of Japan, the Bank of Canada and the Swiss National Bank are offering additional dollar liquidity through their existing swap line arrangements. Instead of weekly trades on the seven-day maturity swap lines, the transactions will now be conducted daily, and at least until the end of April.
Labor costs in the eurozone rose faster in the fourth quarter. This was revealed on Friday by figures from Eurostat, the statistical office of the European Union. Labor costs rose by 5.7 percent on an annual basis in the eurozone in the last three months of 2022. Labor costs rose by 3.7 percent in the third quarter. Wages also rose faster in the fourth quarter, by 5.1 percent on an annual basis. In the third quarter, wages in the eurozone rose by 3.0 percent.
US consumer confidence in the economy fell in March. This emerged from preliminary figures from the University of Michigan on Friday. The consumer confidence index deteriorated from 67.0 in February to 63.4 in the middle of March. It was the first drop in four months. Respondents were also more negative about the current state of the economy. The sub-index fell from 70.7 to 66.4. The expectation index also fell, from 64.7 to 61.5.
The 6M Euribor decreased with 14 basis points to 2.99% compared to previous business day. The 10Y Swap decreased with 10 basis points to 2.88% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
Oil prices rebounded by about 1% on Friday. Brent crude futures rose by 81 cents to $75.51 a barrel, having snapped three days of losses to settle 1.4% higher on Thursday. U.S. West Texas Intermediate crude climbed 78 cents to $69.13 a barrel, after closing 1.1% higher in the previous session.
The European Central Bank raised interest rates as expected by 50 basis points on Thursday, sticking with its fight against inflation and facing down calls by some investors to hold back on policy tightening until turmoil in the banking sector eases.
Major US banks are putting $30bn into regional bank First Republic Bank. This was reported by the US Treasury and the Fed, among others, in a joint statement on Thursday evening. The banks are making this significant injection of capital after there was considerable unease among investors over the collapse of Silicon Valley Bank (SVB) and the Swiss central bank’s billion-dollar bailout to prop up Credit Suisse.
The 6M Euribor increased with 9 basis points to 3.13% compared to previous business day. The 10Y Swap increased with 4 basis points to 2.98% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
Chinese industrial output rose more than in the first two months of this year than in December, but is still slightly disappointing. This was revealed by government figures on Wednesday. Output rose 2.4% year-on-year. Economists had expected an increase of 2.8%. This was higher than in December, when output rose 1.3%. On a monthly basis, February saw a 0.12% rise in output, after a 0.06% rise in December.
Producer prices in the United States fell slightly in February. This was reported by the US Department of Labour on Wednesday. Producer prices fell 0.1% on a monthly basis, after rising 0.3% in January. Earlier, the January increase was 0.7%. Energy prices declined with 0.2% last month. Economists had forecast a 0.3% rise in prices for February. Excluding volatile prices of trade services, food and energy, US producer prices rose 0.2% in February. In January, these core prices already rose 0.5%. Expectations were for a 0.4% rise. On an annualised basis, producer prices rose 4.6% in February and core prices 4.4%. In January, these were 5.7 and 4.4% respectively.
Eurozone manufacturing output increased in January. This was revealed by Eurostat figures on Wednesday. Output rose 0.7% in January compared to December. On a year-on-year basis, output in the eurozone rose 0.9% in January. Economists consulted expected a month-on-month increase of 0.5% and on an annual basis an increase of 0.6%.
The 6M Euribor decreased with 34 basis points to 3.04% compared to previous business day. The 10Y Swap decreased with 10 basis points to 2.94% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
Oil prices fell sharply at the end of the trading day on Tuesday. An April futures for a barrel of West Texas Intermediate crude oil closed 4.8% lower at $71.22 on the New York Mercantile Exchange. The sell-off was partly caused by a limited recovery of the dollar on Tuesday, after a decline on Monday due to concerns about a banking crisis.
Consumer prices in the United States slightly rose in February. This was revealed on Tuesday by figures from the US Department of Labor. Consumer prices rose 0.4% on a monthly basis last month, following a 0.5% increase in January. On an annual basis, prices rose 6.0% compared to 6.4% in January.
Consumer prices in the Netherlands rose faster in February than in January. This was revealed Tuesday by figures from the Central Bureau of Statistics. Last month, the price level rose 8.0% year-on-year, following increases of 7.6% in January and 9.6% in December. In September, inflation peaked at 14.5%.
The 6M Euribor decreased with 7 basis points to 3.38% compared to previous business day. The 10Y Swap increased with 8 basis points to 3.04% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
Oil prices fell more than $1 on Tuesday, extending yesterday’s slide. Brent crude futures were down 87 cents, or 1.1%, at $79.90. U.S. West Texas Intermediate crude futures (WTI) dropped 85 cents, or 1.1%, to $73.93 a barrel. On Monday, Brent fell to its lowest since early January, while WTI dropped to its lowest since December.
India’s annual wholesale price-based inflation (WPI) eased to the lowest in over two years, dragged down by a fall in overall input costs for manufacturers on the back of favourable commodity prices. WPI in February eased to 3.85% year-on-year, compared with 4.73% in the previous month.
UK unemployment remained flat in the three months to January. This was revealed on Tuesday by figures from the UK statistics office ONS. In the period under review, seasonally adjusted unemployment stood at 3.7 per cent, the same as a quarter earlier, but also 0.3 percentage points below the level before the corona pandemic outbreak.
The 6M Euribor decreased with 1 basis point to 3.45% compared to previous business day. The 10Y Swap decreased with 11 basis points to 2.96% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
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